Buyer wants extension on deal to purchase Manatee school land

Published: Tuesday, November 19, 2013 at 6:44 p.m.

Last Modified: Tuesday, November 19, 2013 at 6:44 p.m.

MANATEE COUNTY - A five-story medical complex could pop up next to the school district administration building if a Cincinnati-based company secures the Checkers-Owens Annex, the property they have had under contract with the school district since September.

But Route 32 Investments LLC wants an extension on a due diligence period that expires in December so the company can get proper land use approvals for the 1.36 acre property on Manatee Avenue West.

Delaying the deal could be a risky decision for a district that is relying on the sale of property to combat budget shortfalls before the end of the fiscal year in June. The buyer could become disinterested in what is certain to be a complicated approval process, and walk away from the deal. And a delay means that the deal might not close until April, which would give the district very little time to find a new buyer if it fell through.

“It sounds like they want us to put off getting the money for three or four more months,” School Board member David Miner said. “That concerns me.”

The $2.07 million purchase price is an important property sale for a corner lot with an average appraised value of $1.65 million. Several previous attempts to sell the property, once the location of a Checkers restaurant, have fallen through.

The board could choose to begin talking to a second buyer, Benderson Development, if Route 32 Investments LLC walks away from the deal before Dec. 12, when the inspection period ends.

Benderson representatives have expressed to the district that they are interested in making a quick deal on the property, said Director of Construction Services Jane Dreger, but their bid is for $1.2 million.

It is likely not enough.

The sale of property is crucial to balance the budget, Deputy Superintendent of Operations Don Hall said. The $2 million offer is set to pay a significant portion of budget adjustments, including staff salaries.

“If we go down to the $1.2 million, we just gained another $800,000 in costs,” Hall reminded board members.

While board members did not determine to approve or deny the extension at a Tuesday board workshop, the decision will have to be made at a Dec. 10 board meeting.

“I do think we need some system of backup offers,” Board Chair Karen Carpenter said Tuesday at the workshop.

On Tuesday, the district also discussed several other parcels that will likely soon be approved for sale, including a 3.5 acre parking lot adjacent to Bayshore High School, 5.2 acres of tennis courts at King Middle School and an outparcel at Miller Elementary, among others.

Also at the meeting: School Board members elected Julie Aranibar as their new chairwoman by a vote of 4-1. Board member Bob Gause was opposed.

<p><em>MANATEE COUNTY</em> - A five-story medical complex could pop up next to the school district administration building if a Cincinnati-based company secures the Checkers-Owens Annex, the property they have had under contract with the school district since September. </p><p>But Route 32 Investments LLC wants an extension on a due diligence period that expires in December so the company can get proper land use approvals for the 1.36 acre property on Manatee Avenue West. </p><p>Delaying the deal could be a risky decision for a district that is relying on the sale of property to combat budget shortfalls before the end of the fiscal year in June. The buyer could become disinterested in what is certain to be a complicated approval process, and walk away from the deal. And a delay means that the deal might not close until April, which would give the district very little time to find a new buyer if it fell through.</p><p>“It sounds like they want us to put off getting the money for three or four more months,” School Board member David Miner said. “That concerns me.”</p><p>The $2.07 million purchase price is an important property sale for a corner lot with an average appraised value of $1.65 million. Several previous attempts to sell the property, once the location of a Checkers restaurant, have fallen through.</p><p>The board could choose to begin talking to a second buyer, Benderson Development, if Route 32 Investments LLC walks away from the deal before Dec. 12, when the inspection period ends.</p><p>Benderson representatives have expressed to the district that they are interested in making a quick deal on the property, said Director of Construction Services Jane Dreger, but their bid is for $1.2 million.</p><p>It is likely not enough.</p><p>The sale of property is crucial to balance the budget, Deputy Superintendent of Operations Don Hall said. The $2 million offer is set to pay a significant portion of budget adjustments, including staff salaries.</p><p>“If we go down to the $1.2 million, we just gained another $800,000 in costs,” Hall reminded board members.</p><p>While board members did not determine to approve or deny the extension at a Tuesday board workshop, the decision will have to be made at a Dec. 10 board meeting.</p><p>“I do think we need some system of backup offers,” Board Chair Karen Carpenter said Tuesday at the workshop.</p><p>On Tuesday, the district also discussed several other parcels that will likely soon be approved for sale, including a 3.5 acre parking lot adjacent to Bayshore High School, 5.2 acres of tennis courts at King Middle School and an outparcel at Miller Elementary, among others.</p><p>Also at the meeting: School Board members elected Julie Aranibar as their new chairwoman by a vote of 4-1. Board member Bob Gause was opposed.</p><p>The board unanimously elected Miner as vice-chairman.</p>